University of Texas at Austin awarded $14.4M contract for R&D/Other Defense-Demo/Valid services

Contract Overview

Contract Amount: $14,463,716 ($14.5M)

Contractor: University of Texas AT Austin

Awarding Agency: Department of Defense

Start Date: 2004-06-10

End Date: 2009-12-31

Contract Duration: 2,030 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: 200409!000171!1700!A8304 !NAVAL AIR WARFARE CENTER TRAININ!N6133904C0080 !A!N! !Y! ! !20040610!20060911!170230239!170230239!042000273!N!THE UNIVERSITY OF TEXAS AT AUS!101 E 27TH ST ROOM 4 308!AUSTIN !TX!78712!05000!453!48!AUSTIN !TRAVIS !TEXAS !+000000233917!N!N!000002241781!AD94!RDTE/OTHER DEFENSE-DEMO/VALID !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !541990!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!S!1!001!B! !Z!N!Z! ! !N!Z!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78712

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $14.5 million to UNIVERSITY OF TEXAS AT AUSTIN for work described as: 200409!000171!1700!A8304 !NAVAL AIR WARFARE CENTER TRAININ!N6133904C0080 !A!N! !Y! ! !20040610!20060911!170230239!170230239!042000273!N!THE UNIVERSITY OF TEXAS AT AUS!101 E 27TH ST ROOM 4 308!AUSTIN !TX!78712!05000!453!48!AUSTIN !TRAV… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract's duration of over 2000 days indicates a long-term need for the services. 3. The award type 'COST NO FEE' suggests the contractor bears the financial risk. 4. The contract falls under Research, Development, Test, and Evaluation (RDTE) with a focus on defense demonstration. 5. The North American Industry Classification System (NAICS) code 541990 points to a broad range of professional, scientific, and technical services. 6. The contract was awarded by the Naval Air Warfare Center Training, indicating a specific defense-related application.

Value Assessment

Rating: fair

The total award amount is $14,463,715.50. Without specific performance metrics or comparable contract data for similar R&D demonstration projects, it is difficult to definitively assess value for money. The 'COST NO FEE' award type implies the contractor assumes risk, which can sometimes lead to higher initial bids to cover potential cost overruns. Benchmarking this specific type of defense demonstration R&D against similar contracts is challenging due to its specialized nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified in the provided data, but the designation suggests a robust competitive environment. This level of competition is generally expected to drive prices down and encourage innovation as contractors vie for the award.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it increases the likelihood of obtaining services at the most competitive price and fosters a broader base of potential contractors.

Public Impact

The primary beneficiary is likely the Department of Defense, specifically the Naval Air Warfare Center Training, which will receive the R&D and demonstration services. The services delivered are related to defense demonstration and validation, contributing to advancements in military technology or capabilities. The geographic impact is centered in Texas, where the University of Texas at Austin is located, suggesting potential local economic benefits through employment and resource utilization. The contract may have implications for the academic and research workforce, providing opportunities for researchers and staff at the university.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it hard to gauge effectiveness.
The 'COST NO FEE' structure could lead to contractor cost-cutting that impacts quality if not closely monitored.
The broad NAICS code 541990 might obscure the specific nature of the R&D, making oversight more complex.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The 'COST NO FEE' award type places financial risk on the contractor, potentially incentivizing efficient execution.
The contract is with a known academic institution, suggesting a focus on research and development expertise.

Sector Analysis

This contract falls within the Research, Development, Test, and Evaluation (RDTE) sector, specifically related to defense applications. The market for defense R&D is substantial, driven by government investment in maintaining technological superiority. The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' encompasses a wide array of specialized services, making direct spending benchmarks difficult without more specific details on the R&D focus. However, government spending on defense R&D is a significant portion of the overall federal budget.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. The awardee, The University of Texas at Austin, is an academic institution, not typically a small business. There is no information on subcontracting plans, so the direct impact on the small business ecosystem is likely minimal unless the university actively engages small businesses as subcontractors for specialized support.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the Naval Air Warfare Center Training, the awarding agency. Accountability measures would be tied to the contract's performance requirements and milestones, though these are not detailed in the provided data. Transparency is facilitated by the contract award itself being publicly available, but further details on project progress and outcomes would depend on agency reporting and potential Inspector General reviews if performance issues arise.

Related Government Programs

Naval Air Warfare Center Training Contracts
Department of Defense Research and Development Programs
University Research Contracts
Defense Demonstration Projects

Risk Flags

Long contract duration may increase risk of scope creep or changing requirements.
Lack of specific performance metrics makes objective evaluation difficult.
Cost-plus-no-fee contracts require diligent oversight to ensure quality and timely delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.5 million to UNIVERSITY OF TEXAS AT AUSTIN. 200409!000171!1700!A8304 !NAVAL AIR WARFARE CENTER TRAININ!N6133904C0080 !A!N! !Y! ! !20040610!20060911!170230239!170230239!042000273!N!THE UNIVERSITY OF TEXAS AT AUS!101 E 27TH ST ROOM 4 308!AUSTIN !TX!78712!05000!453!48!AUSTIN !TRAVIS !TEXAS !+000000233917!N!N!000002241781!AD94!RDTE/OTHER DEFENSE-DEMO/VALID !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !541990!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF TEXAS AT AUSTIN.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $14.5 million.

What is the period of performance?

Start: 2004-06-10. End: 2009-12-31.

What is the specific nature of the 'Defense-Demo/Valid' services being provided by The University of Texas at Austin?

The provided data classifies the contract under 'RDTE/OTHER DEFENSE-DEMO/VALID', indicating services related to Research, Development, Test, and Evaluation with a focus on defense demonstration and validation. However, the exact nature of these services is not specified. This could range from developing new defense technologies, testing existing systems under simulated combat conditions, validating the effectiveness of new military equipment, or demonstrating advanced concepts for future defense applications. Without further details from the contracting agency or the awardee, the precise scope of work remains ambiguous, making it difficult to assess the specific technical or strategic value.

How does the contract's 'COST NO FEE' (CNF) award type typically affect contractor performance and pricing in R&D settings?

A 'COST NO FEE' (CNF) contract means the contractor is reimbursed for allowable costs but receives no fee or profit. In R&D settings, this structure places the financial risk squarely on the contractor. This can incentivize efficiency and cost control, as any overruns are borne by the contractor. However, it can also lead to challenges. Contractors might be hesitant to propose innovative but potentially costly approaches, or they may cut corners on quality or scope to manage their own expenses. For taxpayers, CNF contracts can be beneficial if they result in lower overall costs without compromising essential outcomes. However, careful oversight is crucial to ensure the contractor remains motivated to deliver the required R&D objectives effectively despite the lack of profit incentive.

What is the historical spending pattern for similar 'Defense-Demo/Valid' contracts awarded by the Naval Air Warfare Center Training?

Analyzing historical spending for 'Defense-Demo/Valid' contracts by the Naval Air Warfare Center Training requires access to a comprehensive database of federal contract awards. The provided data snippet for this specific contract (N6133904C0080) shows an award of $14,463,715.50 over a period of approximately 5.5 years (June 2004 to December 2009). To establish a pattern, one would need to query contract databases for similar NAICS codes (like 541990 or related R&D codes) and contract descriptions within the defense demonstration domain, specifically from the NAWC T. Comparing the number of awards, average award values, contract durations, and the types of entities receiving these awards (e.g., universities vs. private firms) would reveal trends in spending, identify key players, and potentially highlight shifts in program priorities or funding levels over time.

What are the potential risks associated with awarding a long-duration R&D contract to an academic institution?

Awarding a long-duration R&D contract to an academic institution like The University of Texas at Austin presents several potential risks. Firstly, academic environments may have different priorities than defense needs, potentially leading to slower progress or shifts in research focus. Bureaucratic processes within universities can sometimes impede rapid decision-making and execution. Secondly, while universities possess deep research expertise, they may lack the agile project management or rapid prototyping capabilities found in specialized defense contractors. Thirdly, ensuring consistent oversight and accountability over a multi-year period can be challenging, especially if key personnel leave the project. Finally, the 'COST NO FEE' structure, while shifting risk, might also disincentivize aggressive innovation if the university prioritizes cost recovery over groundbreaking, potentially riskier, R&D endeavors.

How does the 'FULL AND OPEN COMPETITION' designation impact the potential for innovation in this defense R&D contract?

A 'FULL AND OPEN COMPETITION' designation generally fosters innovation by allowing a wide range of potential offerors, including universities, research institutions, and private companies, to compete. This broad competition encourages bidders to propose novel approaches and cutting-edge technologies to differentiate themselves and win the contract. The diversity of potential bidders means that the government is exposed to a wider array of ideas and solutions than might emerge from a limited or sole-source procurement. Furthermore, the competitive pressure inherent in full and open processes can push contractors to invest in R&D to develop superior offerings, thereby driving innovation within the defense sector. The selection process, ideally, favors the proposal that best balances technical merit, innovative approach, and cost-effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: University of Texas System (UEI: 042000273)

Address: 101 E 27TH ST ROOM 4 308, AUSTIN, TX, 90

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,463,715

Exercised Options: $14,463,715

Current Obligation: $14,463,716

Contract Characteristics

Cost or Pricing Data: NO

Timeline